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SUMMARY of BID PRICES  Form

SUMMARY of BID PRICES Form

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hey everyone this is kirk here again from option alpha and in this video we are going to walk through the bid ask spread as it relates to option contracts and this will be a really important video because understanding the bid-ask spread is really important to getting a gauge of both the depth of the market and the liquidity of a market and the premiums that you're going to need to overcome in a spread in order to make money on a position so the first thing i want to talk about in the bid ask spread is basically define what it is so that you understand how the bid-ask spread works and why it gets its different names so the first thing that we have to look at is the ask price of an option contract so i have a couple different prices here on this timeline it's a vertical timeline of different prices a low price of 250 kind of middle of the road price of 255 and then a higher price of 260. what essentially happens is that the lowest price that somebody is willing to sell a option

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